MTECHTIPS

MTECHTIPS:-India Cardamom bearish in spot; trend expected to be negative on MCX

Nedungandam in the Idukki district of Kerala witnessed sales at the rate of Rs.750/Kg for high quality cardamom and Rs.700/Kg for cardamom of average quality on Wednesday.“The overall trend is bearish in the markets as rainfall occurs in the plantation areas. This may lead to higher production and as a result the prices in the spot have come down.” a trader said. But festive demand has picked up and may continue to lend some support to the markets as Deepavali is nearing.On Tuesday, Nedungandom Cardamom witnessed sales at the rate of 800/kg for high quality variety and Rs.750/Kg for average quality variety yesterday. The overall trend appeared to be bullish with no rains in the growing area.“Cardamom is still continuing its journey in the southern direction as the November contract made an intraday low of Rs.901 Wednesday. Next major support is there at Rs.890 and resistance at Rs.920 levels. It would be more bearish if it close below Rs.890 in coming sessions.” our in-house analyst said.There are also reports that farmer unrest could also be in the offing in cardamom sector as Idukki growers demand decontrol of commodity.